Low micro carbon ferrochrome price correction

With the coming of the rainy season and the end of the environmental inspection work, the production of low-micro-carbon ferrochrome in the South is expected to increase significantly. In addition, the operating rate in the north has been continuous and stable, and the supply pressure of low-micro-carbon ferrochrome has re-acted on the market to suppress the price of iron. In addition to the cost support of chromium ore, silicon chromium and other iron prices, the imbalance between supply and demand is the most direct factor leading to the continuous decline in low-carbon ferrochrome prices. Steel mills before the consumption of more inventory, less new bidding, and dealers profit inventory into the market, price competition began.

The second aspect is that steel mills have not entered the next round of purchasing cycle, so far consumption has been slow to lift, while factory output is slowly picking up. Large factories began to reduce prices due to sales pressure, relying on their own production chain advantages, the current Chinese market quotation dropped to 14,900 yuan /60 base tons of self-mining, further pulling down the level of iron prices. Although it is difficult for other factories to follow the price cut, they are not immune to the impact. Southern factories are currently under great pressure to produce, and iron prices have jumped near the cost line. Hainan West Asia Import and Export Group believes that after the current market demand begins to slowly release, the low-carbon ferrochrome market is expected to improve.